Company pension,Personal pension=No pension??!!

smileitconfusespeople_2

Hi I want to check something out, what if I have company pension,and a personal pension, would I still get anything from the goverment? ( not that thers much chance of that, as I've still got about 30yrs before Im due for retirement) as I was advised by a friend that because I have a Personal ,Pension and a company pension, I would be entitled to any pension??!! I know that years ago we were all told that we cannot have both or all three, is this why so many people are investing there funds into propertys aboard??! So that htey are better off in their pensionable years when they cash in :hello: :wave:

Debt_Free_Chick

There is now no limit to the number or different types of pension you can contribute to. But there is a limit to the tax relief you can get on those contributions. If your total contributions are within the limit, you get tax relief on the lot. So things have changed ...... since April last year.

The limit for contributions is 100% of your earnings, but the tax relief is limited to the amount of tax you actually pay. Nothing for you to worry about unless you are paying close to the limit.

dunstonh

I was advised by a friend that because I have a Personal ,Pension and a company pension, I would be entitled to any pension??!!

Never rely on friends for information on pensions. There is so much misinformation, myths, old wives tales and media driven bull out there that you cannot rely on third party info.

If you have personal or company arrangements, these have no impact on any state pensions unless the scheme is contracted out. In this case, you would still get the basic state pension.

Up until 2001, you couldnt pay into a personal and occupational pension at the same time. From 2001 that rule was abolished apart for those earning over 30k. In april 2006, that rule was abolished allowing anyone to have both at the same time.

is this why so many people are investing there funds into propertys aboard??! So that htey are better off in their pensionable years when they cash in :hello: :wave:

Its a risky strategy which could pay off (its just an investment after all). However, if its the only thing they are doing it could easily give them a lot less than they think. Income from property is taxable and when you sell, any gain on the property value is subject to capital gains tax. That could see 40% of the gain wiped out over night. If they borrowed to buy the property, then the lender is going to want their money back as well so they could find what they are left with is a lot smaller than the planned for.

Experienced property investors dont fall into that trap but very many inexperienced individuals do.

smileitconfusespeople_2

Hi dunstonh thankyou for the last part regarding the investment side of property with view to selling to help towards a pension as I am sure a lot of people have jumped on or thought/thinking about this notion very very valuable and worth having another think about...

EdInvestor

If you want to know how much state pension you will get when you retire, you can get a forecast here:

https://www.thepensionservice.gov.uk